B-125112, AUG. 24, 1955

B-125112: Aug 24, 1955

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TO SECRETARY OF THE NAVY: REFERENCE IS MADE TO LETTER OF AUGUST 8. REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN BY YOUR DEPARTMENT IN THE MATTER OF THE MISTAKE ALLEGED TO HAVE BEEN MADE BY NATHAN S. N61119S-358 WAS AWARDED TO NATHAN S. THE ERROR WAS ALLEGED TO BE THE RESULT OF MISPLACED DECIMAL POINTS IN THE BIDS ON EACH OF THE ITEMS MENTIONED. THE UNIT BID AS TO ITEM 12 AS SUBMITTED WAS .11907 WHEREAS THE INTENDED BID WAS CLAIMED TO BE .011907. AS TO ITEM 15 THE ACTUAL BID WAS .04896 INSTEAD OF THE INTENDED BID OF .004896. THE CONTRACTING OFFICER DECLINED TO CORRECT THE BID STATING THAT IT WAS NOT EXCESSIVE IN VIEW OF OTHER BIDS RECEIVED AND IN SUBSEQUENT CORRESPONDENCE THE BIDDER WAS ADVISED TO COMPLETE PAYMENT FOR THE THREE ITEMS BID UPON AND THEN SUBMIT A CLAIM TO THIS OFFICE FOR REFUND OF THE PURCHASE PRICE OF ITEMS 12 AND 15.

B-125112, AUG. 24, 1955

TO SECRETARY OF THE NAVY:

REFERENCE IS MADE TO LETTER OF AUGUST 8, 1955, WITH ENCLOSURES FROM THE ASSISTANT SECRETARY (MATERIAL), REQUESTING A DECISION AS TO THE ACTION TO BE TAKEN BY YOUR DEPARTMENT IN THE MATTER OF THE MISTAKE ALLEGED TO HAVE BEEN MADE BY NATHAN S. COLEN AND SON, INC., OF LOS ANGELES, IN ITS BID ON LOTS 12 AND 15 UNDER SALE INVITATION NO. B-7-55 ISSUED BY THE U.S. NAVAL SUPPLY DEPOT AT GUAM.

CONTRACT NO. N61119S-358 WAS AWARDED TO NATHAN S. COLEN AND SON, INC., FOR ITEMS 12, 15 AND 40 OF THE PROPERTY LISTED IN THE INVITATION REFERRED TO. PROMPTLY UPON RECEIPT OF NOTICE OF AWARD THE BIDDER CABLED THE CONTRACTING OFFICER ALLEGING A MISTAKE IN ITS BID AS TO ITEMS 12 AND 15 AND REQUESTING CORRECTION. THE ERROR WAS ALLEGED TO BE THE RESULT OF MISPLACED DECIMAL POINTS IN THE BIDS ON EACH OF THE ITEMS MENTIONED. THE UNIT BID AS TO ITEM 12 AS SUBMITTED WAS .11907 WHEREAS THE INTENDED BID WAS CLAIMED TO BE .011907, AND AS TO ITEM 15 THE ACTUAL BID WAS .04896 INSTEAD OF THE INTENDED BID OF .004896.

THE CONTRACTING OFFICER DECLINED TO CORRECT THE BID STATING THAT IT WAS NOT EXCESSIVE IN VIEW OF OTHER BIDS RECEIVED AND IN SUBSEQUENT CORRESPONDENCE THE BIDDER WAS ADVISED TO COMPLETE PAYMENT FOR THE THREE ITEMS BID UPON AND THEN SUBMIT A CLAIM TO THIS OFFICE FOR REFUND OF THE PURCHASE PRICE OF ITEMS 12 AND 15. THIS PROCEDURE HAS BEEN FOLLOWED.

NO EVIDENCE, SUCH AS ORIGINAL WORKSHEETS, HAS BEEN SUBMITTED BY THE BIDDER; HOWEVER, ASSUMING THAT A MISTAKE WAS MADE AS TO ITEMS 12 AND 15 AS ALLEGED, IT DOES NOT APPEAR THAT THE ERROR WAS OF SUCH NATURE AS TO HAVE REQUIRED THE CONTRACTING OFFICER TO REQUEST CONFIRMATION BEFORE MAKING THE AWARD, AND THE ACCEPTANCE OF THE BIDS THEREFORE EFFECTED A BINDING CONTRACT. THIS CONCLUSION IS STRENGTHENED BY THE FIGURES FURNISHED AS TO ACQUISITION COSTS AND PRESENT MARKET VALUES OF ITEMS 12 AND 15.

ACCORDINGLY, IN VIEW OF THE BIDDER'S REFUSAL TO REMOVE THE MATERIAL INCLUDED IN ITEMS 12 AND 15, THE PROVISIONS OF ARTICLE 18 OF THE CONTRACT, AS AMENDED, SHOULD BE APPLIED AND 20 PERCENT OF THE PURCHASE PRICE OF SAID ITEMS RETAINED AS LIQUIDATED DAMAGES AND THE BALANCE REMITTED TO THE BIDDER.